State budget cuts could affect Steilacoom Historical School District

The Steilacoom Historical School District is bracing for the outcome of the Washington State Legislature’s November 28 special session.

Celeste Johnston, the District Public Information Officer, told South Puget Sound News, “Given that public schools comprise the largest portion of the state budget, the Steilacoom Historical School District #1 is concerned about a potential impact on our students and schools.” 

State funds represent a significant amount of the SHSD’s budget. In the 2011-2012 budget, the largest portion of the SHSD’s general fund revenue is from state apportionment funds, which comprise 60.32 percent of the total. Levy funds supply 19.12 percent of general fund revenue, and state categorical funds provide 10.45 percent.

Johnston commented, “The State funding mechanism for schools is inequitable and funds each school district differently. Therefore, the impact on our schools will depend on the eventual reductions that are enacted.  In short, it is too early to predict whether the District will need to consider any program reductions.” She added, “The timing of state reductions is also uncertain so we are unable to predict the implementation timeline of program reductions, if enacted.” 

The SHSD budget estimates that the general fund’s balance at the end of this school year will be well over $2 million. Johnston explained that this figure includes a 6 percent minimum fund balance requirement. “Minimum fund balance is necessary in order to cover approximately one month of payroll and expenses (district wide) and assists in any revenue shortfalls or Federal and/or State cuts (sometimes unexpected or mid-year as we have recently experienced), Johnston said. If the minimum fund balance isn’t included in the budget, the undesignated fund balance at the end of the school year is projected to be $737,667.

“Our District has a strong record of both academic performance and fiscal responsibility,” Johnston said.  “Because the District spends resources wisely, we will make every effort to find a way to handle a reduction in revenue while minimizing negative impact to students and employees.”